Prof. Tyler yamazaki

Growth Investing
This strategy became popular in the 1990s, during the time when
technological companies were on the rise. Back then, many investors who
applied this strategy were able to get a huge amount of profit. It is to be
noted that this strategy is riskier than other strategies.

---

The best way to understand this strategy is to compare it with value
investing. While value investing focuses on the present moment, growth
investing focuses on the future. This is the reason why a growth investor
may buy a stock that is currently trading higher than its actual worth. Again,
a growth investor looks into the future. This is because when he sees that a
particular stock will trade at a higher price in the future, then the investment
that you make today can be considered a profitable one.
When you use growth investing, the best stocks to invest in are those that
have a high capacity to grow. Therefore, growth investors pay special
attention to small and new companies. This is because small and start-up
companies have a big potential and space for development.
Qualitative Analysis
This strategy gives primary focus on the quality of a company. You need to
consider the people who manage the company, their character, and where
they come from. The reason is that a company, no matter how good it is,
will not do well if it is badly managed. It also takes into consideration the
management philosophy of the company or the style by which the people of
the company intend to achieve its goals. Pay attention to the managers of
the company, their background, and experiences. Are they experienced
enough to do the job? Do their experiences fit with their responsibilities?
You should also consider the labor force. Are the people who function as
the arms and legs of the company competitive enough to their job? It may
be hard to understand numbers all the time. Sometimes it is easier to
estimate people. This is where qualitative analysis comes into play. For
example, a company that is composed of the best business people in the
world would have a high rate of success. Accordingly, there is a good
chance that the price of its stocks will increase, which makes it a good
investment.